Usha Martin gets nod from 99.99% shareholders for steel biz sale to Tatas

Shareholders of Usha Martin have approved the sale of the company's steel business to Tata Steel as a going concern on a slump sale basis.

A special resolution in this regard was passed with requisite majority at Usha Martin Limited's extraordinary general meeting, with 99.99 per cent shareholders voting in its favour, the company informed the exchanges in a regulatory filing late night yesterday.

"The resolution proposed herein above has been passed with requisite majority," Usha Martin said.

Tata Steel had earlier said it has executed definitive agreements for the acquisition of UML's steel business for Rs 43-47 billion through a slump sale on a going concern basis.

According to Usha Martin Limited (UML), the sale of its steel business to Tata Steel will help the company significantly reduce its debt.

UML's steel business comprises the specialised 1 million tonnes per annum (MTPA) alloy based manufacturing capacity in long products segment based in Jamshedpur, a producing iron-ore mine, a coal mine under development and captive power plants, Tata Steel had said.

It is amongst the largest wire rope manufacturers in the world and a leading speciality steel producer in India.